1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Vadim26 [7]
3 years ago
9

An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $

6,170,000 and will be sold for $1,370,000 at the end of the project. If the tax rate is 30 percent, what is the aftertax salvage value of the asset?

Business
1 answer:
tia_tia [17]3 years ago
3 0

Answer:

After tax salvage value $1,278,852.8‬

Explanation:

MARCS five years class:

after four years we will have depreicate:

0.2 + 0.32 + 0.192 + 0.1152 = 0,8272‬

(Data from the attached MACRS)

tax basis of the asset:

6,170,000 x ( 1 - 0.8272) = 1.066.176‬

We will be taxed for the difference between the basis and the salvage value:

1,370,000 - 1,066,176 = 303,824‬ taxable gain:

303,824 x 30% = 91,147.2

After tax salvage value:

salvage valeu - income tax expense

1,370,000 - 91,147.2 = 1,278,852.8‬

You might be interested in
Consumer wealth is defined as the total value of ______. Multiple choice question. assets minus the total value of liabilities a
Zepler [3.9K]

Answer:

Asset minus the total value liabilities

Explanation:

6 0
2 years ago
The cost of perpetual preferred stock is found as the preferred's annual dividend divided by the market price of the preferred s
VikaD [51]
Answer: A


Preferred share dividends are distributions of profits and not interest payments. Thus not tax-deductible.
5 0
2 years ago
The Carla Vista Acres Inn is trying to determine its break-even point during its off-peak season. The Inn has 50 rooms that it r
SashulF [63]

<u>Solution and Explanation:</u>

 Breakeven point = Fixed cost divide by Contribution margin

Contribution margin = Sales minus Variable cost.

Fixed cost

Particular           Amount

Salaries                  $5000

Utilities                   $1100

Depreciation   $1200

Maintenance   $780

Total Fixed cost = $8,080.

Variable cost =Maid services plus Other cost = $7 plus $13 = $20

Contribution = $40 minus $20 = $20.

Breakeven point in number = $8080 divide 20 = 404 rented rooms per month.

Breakeven point in $ = Breakeven point rented rooms × rent cost.

=> 404 rooms multiply $40 = $16,160.

8 0
3 years ago
What are the set of rules that people need to follow while communicating at the workplace called?
Alex777 [14]
Code of conduct. This is a set of rules that everyone is expected to know and follow to the fullest extent.
7 0
3 years ago
Read 2 more answers
On January 1, 2017, Sunland Industries had cash and common stock of $196000. At that date the company had no other asset, liabil
Dafna1 [17]

Answer:

$32,980

Explanation:

The computation of comprehensive income is shown below:-

Comprehensive income = Cash dividend + Unrealized holding gain

= $11,800 + $31,800

= $32,980

Comprehensive income includes net profit and other complete or compression  profits.

Net revenue involves operating and non-operating income, net of expenses . Other comprehensive profits consisted of unrealized gains or losses, cash flow hedges.

So in this question we considered the dividend and unrealized holding gain as an comprehensive income

5 0
2 years ago
Other questions:
  • Following the assumption that firms maximize profits, how will the price and output policy of an unregulated monopolist compare
    10·1 answer
  • Rather than determining whether a culture has good or bad ethics, it is best to look for practical solutions to the cultural cha
    14·1 answer
  • How can a nation benefit from effectively exporting its goods??
    16·2 answers
  • At December 31, 2020, the following information was available for Concord Corporation: ending inventory $35,750, beginning inven
    7·1 answer
  • After working for a large firm for several​ years, tyler started his own landscaping design business.​ however, he soon ran out
    15·1 answer
  • Empire Electric Company (EEC) uses only debt and common equity. It can borrow unlimited amounts at an interest rate of rd = 11%
    11·1 answer
  • A general rule of thumb is to keep your credit utilization rate at 30% or lower. What is your approximate credit utilization rat
    8·1 answer
  • Help hep help help help
    9·1 answer
  • Services marketing differs from that of tangible goods, and many firms have adopted a strategy to Blank______.
    9·1 answer
  • if a bank reconciliation included a deposit in transit of $765, the company's journal entry for this reconciling item would incl
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!